The 2025-26 Budget will deliver progress for the people of Scotland, with a record increase in frontline NHS spending, and plans to lift 15,000 children out of poverty by mitigating the UK Government’s two-child limit from 2026.
Setting out the Budget to Parliament, Finance Secretary Shona Robison said the government had listened and would now act on the priorities of people, businesses and organisations across the country – delivering progress for Scotland, by Scotland.
The 2025-26 Budget includes:
- a record £2 billion increase in frontline NHS spending taking overall health and social care investment to £21 billion to reduce NHS waiting lists, making it easier for people to see their GP, and progress the Belford Hospital, Monklands Hospital and Edinburgh Eye Pavilion projects
- funding for universal winter heating payments for older Scots, and investment to allow the mitigation of the two-child cap from 2026
- tax choices that freeze income tax rates, increase the Basic and Intermediate rate thresholds to put more money in the pockets of low and middle-income earners, and provide business rates relief for hard-pressed local pubs and restaurants
- a record £15 billion for local government to support the services communities rely on and £768 million to provide 8,000 more affordable homes
- £4.9 billion of action on the climate and nature crises to lower emissions and energy bills, protect the environment, and create new jobs and opportunities
- a real-terms uplift of 3% for spending on education and skills to maintain teacher levels and invest in school infrastructure, as well as new funding to put more breakfast clubs in primary schools
- a £34 million uplift for culture in 2025-26
The Finance Secretary said:
“I am proud to present a budget that delivers on the priorities of the people of Scotland.”
“Parliament can show that we understand the pressures people are facing. We can choose to come together to bring hope to people, to renew our public services, and deliver a wealth of new opportunities in our economy.
“This Budget invests in public services, lifts children out of poverty, acts in the face of the climate emergency, and supports jobs and economic growth.
“It is a budget filled with hope for Scotland’s future and I look forward to working with all parties in Parliament to secure agreement around its provisions.”
Jonathan Carr-West, Chief Executive, LGIU Scotland, responded by saying:
“We know from our annual survey that local government finances in Scotland are hanging by a thread. One in four councils are afraid they won’t be able to pass a balanced budget next year. Three quarters are warning that they may not be able to do so within the next five years. Today’s Budget from the Scottish Government does not engage with the scale of that challenge.
Local government may welcome commitments to the New Deal with Local Government continuing work on a fiscal framework and plans to deliver new revenue raising powers. However, they will be dismayed to see how much funding continues to be ring fenced.
There is an increase in core funding in today’s Budget but it doesn’t cover the ever growing costs of core statutory services.
The Scottish Government has responded to the concerns of councils and has removed the freeze on council tax rises, but the Cabinet Secretary’s expectation that record funding levels should mean councils do not need to put up council tax is too complacent.
The truth is that even with the additional funding announced today, local authorities will still need to raise council tax and make cuts to services and will still edge closer to being unable to balance their books.”
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